| Has the economic downturn minimized the
importance of the Customer Experience?
In Chapter 5 of my book, Strategy Activation: How to
Turn Your Vision into Marketplace Success, I talk about how important it is to improve
your holistic customer experience to differentiate your company from your competitors. As
products and services continue down the inexorable path toward commodification, it is the
ongoing customer experience that drives customers to choose one vendor over another.
However, in the past two years, as the economic downturn
has forced significant changes in customer behavior, many have questioned the importance
of the overarching customer experience. These naysayers claim that in tough times price is
the only thing that matters. Customers, they say, are more likely to accept a bad
experience as long as they are getting a good deal. This perspective, however, is not
confirmed by the data.
When Money is Tight, Customers Expect an Even Greater
Customer Experience...
The most recent Harris Interactive Customer Experience
Impact Report surveyed consumers on how they engage with companies both online and via
phone, what they find frustrating, and how negative and positive customer experiences
affect them.
They discovered these facts that are startling to most
business owners today...
- 87% of the surveyed consumers stopped doing business with an
organization or company because of a negative customer experience. That's up from 68%
reported just two years ago.
- Even during tough economic times, the significance of
customer experiences does not dwindle. More than half (58%) of consumers polled said they
will pay more for a better customer experience during a down economy.
- Consumers stated that the most important thing companies
could do to encourage them to spend more is to improve the overall customer experience
So, it's clear that even when finances are tight, people
still value good service.
Why This Study's Results Are Not Surprising To Me...
When money is easy to come by customers are likely to be
more forgiving. Consider this restaurant dining example...
When the economy was booming many couples found themselves
dining out twice per week or more. With eight to ten dining-out occasions per month a
single bad experience is easily forgotten. However, when belts tighten, monthly dining-out
occasions may settle back to just two or three. With fewer opportunities to
"splurge" on an evening out couples and families now demand that each experience
justifies the expenditure of limited funds. Thus a bad experience like poor service, long
wait times and cold food makes a bigger impression and stays with us longer.
Once you have a bad customer experience, you may wait
months before you visit that restaurant again – and that's if you ever go back. Plus,
you'll probably tell your family and friends about your experience. This will make them
think twice before they visit that restaurant.
Real Proof That Bad Customer Experience News
Travels Far...
A recently published Forrester Research report, "How
Customer Experience Drives Word of Mouth" cites:
- Consumers tend to discuss bad experiences with more people
than they discuss good ones
- Gen Xers, as a group, tend to tell the most people about a
bad experience
- Gen Yers are the chattiest in general. They are more likely
to tell someone about a good experience. They are also the most likely to share a bad
experience.
So, don't you think that you should find out right now
exactly what your customers are saying about your organization's performance over the past
eighteen months? Have their experiences diminished in the wake of corporate austerity? As
we begin to see the recession bottom out, now is the time to explore this issue; to find
new ways to improve the customer experience; to ensure that your customers have only good
things to say! |
